US Judge orders federal govt to issue refunds worth $130 bn collected as 'illegal' tariffs
Judge Richard Eaton of the U.S. Court of International Trade said the government must start returning potentially billions of dollars to importers who paid the duties under President Donald Trump’s trade policy
- Mar 5, 2026,
- Updated Mar 5, 2026 3:35 PM IST
A U.S. trade court judge has ordered the federal government to begin issuing refunds to companies that paid tariffs ruled illegal by the U.S. Supreme Court last month.
Judge Richard Eaton of the U.S. Court of International Trade said the government must start returning potentially billions of dollars to importers who paid the duties under President Donald Trump’s trade policy, according to Reuters.
The order requires U.S. Customs and Border Protection (CBP) to finalise the cost of shipments that entered the United States without applying the disputed tariff and issue refunds with interest.
How will the US tariff refund process work?
When goods enter the United States, importers typically pay an estimated duty at the border. The final amount is calculated later in a process known as “liquidation,” which usually occurs about 314 days after entry.
Eaton directed Customs officials to complete this process without applying the illegal tariffs. That would automatically trigger refunds for companies that overpaid.
“Customs knows how to do this,” Eaton said during a court hearing, noting that the agency routinely issues refunds when importers overpay estimated duties.
Customs says the scale is unprecedented
CBP previously told the court that implementing refunds could be extremely complicated because the tariffs affected a massive number of shipments.
According to court filings, the agency may need to review more than 70 million import entries, many of which could require manual processing. Customs had asked for up to four months to assess how to handle the refunds.
The judge has scheduled another hearing on Friday to review the agency’s plans.
Billions at stake for importers
The U.S. government collected more than $130 billion in tariff payments under the program, which was imposed using the International Emergency Economic Powers Act (IEEPA).
The Supreme Court ruled the tariffs were collected illegally but did not specify how refunds should be handled, leaving lower courts to address the issue.
Thousands of cases filed against US tariffs
The order stems from a lawsuit filed by Atmus Filtration, which said it paid about $11 million in tariffs. That case is one of roughly 2,000 lawsuits filed by companies seeking refunds.
More than 300,000 importers paid the duties, many of them small businesses. Trade attorney George Tuttle said the refund process should be straightforward.
(With inputs from Reuters)
A U.S. trade court judge has ordered the federal government to begin issuing refunds to companies that paid tariffs ruled illegal by the U.S. Supreme Court last month.
Judge Richard Eaton of the U.S. Court of International Trade said the government must start returning potentially billions of dollars to importers who paid the duties under President Donald Trump’s trade policy, according to Reuters.
The order requires U.S. Customs and Border Protection (CBP) to finalise the cost of shipments that entered the United States without applying the disputed tariff and issue refunds with interest.
How will the US tariff refund process work?
When goods enter the United States, importers typically pay an estimated duty at the border. The final amount is calculated later in a process known as “liquidation,” which usually occurs about 314 days after entry.
Eaton directed Customs officials to complete this process without applying the illegal tariffs. That would automatically trigger refunds for companies that overpaid.
“Customs knows how to do this,” Eaton said during a court hearing, noting that the agency routinely issues refunds when importers overpay estimated duties.
Customs says the scale is unprecedented
CBP previously told the court that implementing refunds could be extremely complicated because the tariffs affected a massive number of shipments.
According to court filings, the agency may need to review more than 70 million import entries, many of which could require manual processing. Customs had asked for up to four months to assess how to handle the refunds.
The judge has scheduled another hearing on Friday to review the agency’s plans.
Billions at stake for importers
The U.S. government collected more than $130 billion in tariff payments under the program, which was imposed using the International Emergency Economic Powers Act (IEEPA).
The Supreme Court ruled the tariffs were collected illegally but did not specify how refunds should be handled, leaving lower courts to address the issue.
Thousands of cases filed against US tariffs
The order stems from a lawsuit filed by Atmus Filtration, which said it paid about $11 million in tariffs. That case is one of roughly 2,000 lawsuits filed by companies seeking refunds.
More than 300,000 importers paid the duties, many of them small businesses. Trade attorney George Tuttle said the refund process should be straightforward.
(With inputs from Reuters)